EU Pressures Portugal

The EU is putting pressure on Portugal to come cap in hand to the EU for a bailout.

Ewald Nowotny, a governing council member of the European Central Bank, is quoted in the Telegraph:

"From a purely economic point of view one could probably recommend it. The domestic political situation in Portugal has clearly worsened ... the head of the government has stepped down."

Why such advice?

Philanthropy?

No, this is purely self interest based on fear of the Eurozone unravelling as a result of economic chaos in Portugal. Were Portugal to accept a bailout, the people of Portugal would end up having to sacrifice their economic well being for the future of the Euro.

Is this something that they really want?

It is not just Portugal that threatens the Euro, Ireland will need further refinancing and Spain is looking decidedly unstable as well.